A FINANCIER who tried to launch an alternative deal to the proposed takeover of HBOS by Lloyds TSB said yesterday the battle for the bank’s independence was all but lost.

Jim Spowart, who founded Intelligent Finance and Standard Life Bank, con ceded defeat in his own attempt to take over the bank, and said the two banking grandees fighting to keep HBOS independent would have to do something “exceptional”.

He blamed a series of leaks for ending his campaign. “For some reason, the UK Government is opening up competition rules to let this happen.